quipolymers announced today that it has signed a definitive agreement to sell its pure terephthalic acid (PTA) and polyethylene terephthalate resins (PET) production facilities at its manufacturing site in Ottana, Italy to a joint-venture between Ottana Energia and Indorama. Ottana Energia, owned by Paolo Clivati, currently operates a 140 megawatt power and utilities plant on the Ottana manufacturing site. Indorama is a global chemical producer of PTA, PET and polyester fibers based regionally in Thailand, the Netherlands, Lithuania, and the USA. Financial terms of the agreement were not disclosed.
“The decision to sell the Ottana assets was made to sustain the long-term value of the site while enabling our Equipolymers production facilities in Schkopau, Germany to focus on R&D and new technologies in markets that best serve our customers,” said Ramesh Ramachandran, president and CEO for Equipolymers. “This move will allow us to maximize access to key raw materials and improve our cost structure over the longer term.” Throughout this process both Dow and PIC have been committed to finding a solution that would ensure the future viability of the site and continued employment for the local residents.
There are approximately 120 employees at the Ottana facility, located on the island of Sardinia, Italy. The facility produces PTA as raw material, and PET a high quality plastic use extensively in the packaging and beverage industry. Equipolymers will continue to run its manufacturing facility in Schkopau, Germany.
The sale is expected to close June 1, 2010.
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